Stocks
Michael Burry is Shorting Apple
Maybe you should do so as well — here’s why
He just revealed a huge bet that Apple stock is going to fall by buying Apple put options.
- Michael Burry, head of Scion Asset Management, just reported a huge short position with put options in Apple (AAPL). He has been very successful in investing during past downturns.
- This should wake up investors to Apple’s high valuation and other issues with the tech company.
- Investors should be careful with AAPL stock, especially if a recession occurs from falling U.S. consumer spending.
On May 16, Michael Burry, who runs Scion Asset Management, reported in a quarterly 13F filing that his firm has a huge short position in Apple (AAPL). A short position provides a profit to investors only if the stock being shorted begins to fall in price. It’s the opposite of owning a stock or having a “long” position.
He bought a large number of put options. This is now his company’s largest holding, representing over 17.86% of total assets reported in the 13F filing.